DoD awards $10.97M contract for administrative management consulting services to Cubic Global Defense, Inc
Contract Overview
Contract Amount: $10,970,759 ($11.0M)
Contractor: Cubic Global Defense, Inc.
Awarding Agency: Department of Defense
Start Date: 2005-09-30
End Date: 2006-09-29
Contract Duration: 364 days
Daily Burn Rate: $30.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Other
Place of Performance
Location: FORT LEAVENWORTH, LEAVENWORTH County, KANSAS, 66027
State: Kansas Government Spending
Plain-Language Summary
Department of Defense obligated $11.0 million to CUBIC GLOBAL DEFENSE, INC. for work described as: Key points: 1. Contract awarded under full and open competition, suggesting a competitive bidding process. 2. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 3. The contract duration is 364 days, indicating a short-term need for services. 4. The North American Industry Classification System (NAICS) code 541611 points to general management consulting services. 5. The award was made by the Department of the Army, a component of the Department of Defense. 6. The contractor, Cubic Global Defense, Inc., has secured this award, indicating past performance or competitive advantage.
Value Assessment
Rating: fair
The contract value of $10.97 million for a one-year period for administrative management consulting services appears to be within a reasonable range for specialized government support. Benchmarking against similar contracts for management consulting services would provide a clearer picture of value for money. The firm fixed-price nature of the contract helps in cost predictability, but the absence of detailed performance metrics makes a definitive value assessment challenging without further context on the scope and deliverables.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The presence of two bids suggests a moderate level of competition for this specific requirement. While two bidders participated, it is unclear if this represents the full extent of market interest or if other potential contractors chose not to bid. A higher number of bidders typically correlates with better price discovery and potentially lower costs for the government.
Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it encourages a wider range of offers, potentially leading to more competitive pricing and better value. However, with only two bids, the cost savings realized may be less significant than in a more robustly competed scenario.
Public Impact
The primary beneficiary of this contract is the Department of the Army, which receives administrative management and general management consulting services. These services are intended to support the operational efficiency and management functions within the Army. The geographic impact is likely concentrated within the Army's operational areas, though the specific location of service delivery is not detailed. The contract may have implications for the federal workforce by potentially supplementing or supporting existing administrative roles.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition with only two bidders could indicate potential market concentration or barriers to entry for other firms.
- The fixed-price nature of the contract, while beneficial for cost control, could lead to scope creep issues if not managed carefully.
- Lack of detailed performance metrics in the provided data makes it difficult to assess the quality and effectiveness of the services delivered.
Positive Signals
- Awarded under full and open competition, ensuring a broad opportunity for qualified contractors.
- Firm Fixed Price contract type provides cost certainty for the government.
- The contractor, Cubic Global Defense, Inc., has experience in government contracting, suggesting a level of reliability.
Sector Analysis
The administrative management and general management consulting services sector is a significant part of the professional services industry supporting government operations. This contract falls under the broader category of professional, scientific, and technical services. Spending in this area often fluctuates based on agency needs for strategic planning, organizational efficiency improvements, and specialized project management. Comparable spending benchmarks would require analysis of similar consulting contracts across various federal agencies for similar scopes of work.
Small Business Impact
The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a small business set-aside. The award to a larger entity means that opportunities for small business participation would likely depend on the prime contractor's own subcontracting plans, which are not detailed here.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and the administrative contracting officer within the Department of the Army. Accountability measures are inherent in the firm fixed-price contract structure, where the contractor is responsible for delivering services within the agreed-upon price. Transparency is facilitated by the public nature of contract awards, though detailed performance reports and specific oversight activities are often not publicly disclosed.
Related Government Programs
- Department of Defense Administrative Support Contracts
- Management and Consulting Services for Federal Agencies
- Army Logistics and Readiness Support
- Professional Services Contracts
Risk Flags
- Limited Competition
- Potential for Scope Creep
- Performance Measurement Uncertainty
Tags
department-of-defense, department-of-the-army, administrative-management-consulting, general-management-consulting, firm-fixed-price, full-and-open-competition, professional-services, management-support, contract-award, federal-spending, cubic-global-defense
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $11.0 million to CUBIC GLOBAL DEFENSE, INC.. See the official description on USAspending.
Who is the contractor on this award?
The obligated recipient is CUBIC GLOBAL DEFENSE, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $11.0 million.
What is the period of performance?
Start: 2005-09-30. End: 2006-09-29.
What is the track record of Cubic Global Defense, Inc. with the Department of Defense?
Cubic Global Defense, Inc. has a history of contracting with the Department of Defense across various service areas. While this specific award is for administrative management consulting, the company's broader portfolio often includes training systems, simulation, and defense readiness solutions. Analyzing their past performance on similar contracts, including any reported issues or successes, would provide a more comprehensive understanding of their reliability and capability. Reviewing contract databases and performance reports can reveal patterns in their delivery, adherence to schedules, and overall client satisfaction within the DoD.
How does the $10.97 million value compare to similar administrative management consulting contracts?
The $10.97 million contract value for a 364-day period of performance for administrative management and general management consulting services needs to be benchmarked against similar awards to assess its value. Factors such as the specific scope of work, the complexity of the services required, and the level of expertise demanded will influence pricing. Without detailed information on the deliverables and the specific challenges addressed, a direct comparison is difficult. However, for large-scale federal agencies like the Department of the Army, contracts in the multi-million dollar range for specialized consulting are not uncommon, especially for strategic or organizational improvement initiatives.
What are the primary risks associated with this firm fixed-price contract?
The primary risks associated with this firm fixed-price contract, while offering cost certainty to the government, lie in potential scope definition issues and contractor performance. If the scope of work is not clearly defined and managed, the contractor may deliver services that do not fully meet the agency's evolving needs, or conversely, the government might face pressure to expand the scope without commensurate price adjustments. Another risk is that the contractor, in an effort to maximize profit under a fixed price, might cut corners on quality or personnel, impacting the effectiveness of the consulting services. Robust oversight and clear communication channels are crucial to mitigate these risks.
What is the expected program effectiveness given the contract details?
The expected program effectiveness hinges on the clarity of the administrative management and general management consulting objectives set by the Department of the Army and the contractor's ability to meet them. The firm fixed-price structure incentivizes the contractor to deliver efficiently within budget. However, the effectiveness is also dependent on the quality of the consultants assigned, their understanding of the Army's specific operational environment, and the agency's willingness to implement the recommendations provided. Without specific performance metrics or defined outcomes, assessing effectiveness remains speculative, but the intent is to improve administrative processes and management.
What are the historical spending patterns for administrative management consulting services by the Department of the Army?
Historical spending patterns for administrative management consulting services by the Department of the Army typically show significant investment in areas related to organizational efficiency, strategic planning, human capital management, and process improvement. The Army, being a large and complex organization, frequently engages external expertise to address specific challenges or to bring in best practices from the private sector. Spending can vary year-to-year based on budgetary allocations, evolving strategic priorities, and the initiation of new programs or reforms. Analyzing past contract awards for NAICS code 541611 and similar service codes would reveal trends in contract values, durations, and the types of consulting services most frequently procured.
What is the significance of the contract being awarded in Kansas (ST: KS, SN: KANSAS)?
The indication of 'ST: KS' and 'SN: KANSAS' likely refers to the state where the contractor's office or a significant portion of the work under this contract is based or registered, rather than the primary location of service delivery for the Department of the Army. Many federal contracts are awarded to companies headquartered or with a strong presence in specific states. This detail might be relevant for economic impact analysis or understanding the geographic distribution of federal contracting dollars, but it does not necessarily dictate where the consulting services will be performed, which could be at various Army installations or even remotely.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Cubic Corporation (UEI: 008382293)
Address: 4550 THIRD AVENUE SE, STE, LACEY, WA, 10
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W91QF404D0008
IDV Type: IDC
Timeline
Start Date: 2005-09-30
Current End Date: 2006-09-29
Potential End Date: 2006-09-29 00:00:00
Last Modified: 2010-03-02
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